§ 554.7502

554.7502 Rights acquired by due negotiation. 1. Subject to sections 554.7205 and 554.7503, a holder to which a negotiable document of title has been duly negotiated acquires thereby: a. title to the document;b. title to the goods;c. all rights accruing under the law of agency or estoppel, including rights to goods delivered to the bailee after the document was issued; and d. the direct obligation of the issuer to hold or deliver the goods according to the terms of the document free of any defense or claim by the issuer except those arising under theterms of the document or under this Article, but in the case of a delivery order, the bailee’sobligation accrues only upon the bailee’s acceptance of the delivery order and the obligationacquired by the holder is that the issuer and any indorser will procure the acceptance of thebailee. 2. Subject to section 554.7503, title and rights acquired by due negotiation are not defeated by any stoppage of the goods represented by the document of title or by surrender of the goodsby the bailee, and are not impaired even if: a. the due negotiation or any prior due negotiation constituted a breach of duty;b.

goods represented by the document of title or by surrender of the goodsby the bailee, and are not impaired even if: a. the due negotiation or any prior due negotiation constituted a breach of duty;b. any person has been deprived of possession of a negotiable tangible document or control of a negotiable electronic document by misrepresentation, fraud, accident, mistake,duress, loss, theft, or conversion; or c. a previous sale or other transfer of the goods or document has been made to a third person. [S13, §3138-a41, -a47, -a48, -a49, -b31, -b37, -b38, -b39, -b41; C24, 27, 31, 35, 39, §8276, 8282 – 8284, 8286, 9701, 9707 – 9709, 9949, 9954, 9962, 9967, 9991; C46, 50, 54, 58, 62,§487.32, 487.38 – 487.40, 487.42, 542.41, 542.47 – 542.49, 554.21, 554.26, 554.34, 554.39,554.63; C66, 71, 73, 75, 77, 79, 81, §554.7502] 2007 Acts, ch 30, §30 – 32, 45, 46 Sat Dec 23 01:57:59 2023 Iowa Code 2024, Section 554.7502 (24, 0)